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Imugene Limited (ASX: IMU) shares have jumped by 5% in trading so far today after the biotechnology company announced it has completed recruitment for its HER-Vaxx Phase-2 gastric cancer trial. At the time of writing, the Imugene share price is trading at 10.5 cents after closing yesterday’s session at 10 cents.

Why did the Imugene share price rise?

The Imugene share price is on the move after the company reported the recruitment of the final patient means it can now begin the clinical trial for its gastric cancer drug, HER-Vaxx.  

This follows the recent Independent Data Monitoring Committee (IDMC) review of HER-Vaxx Phase 2 safety and efficacy data, in which it reported that preliminary data were strong and showed high a survival effect for the drug.

Due to the strong data, the IDMC provided guidance that it was appropriate to reduce the number of patients required for the Phase 2 trial.

Following this guidance, Imugene says it has reduced the number of patients for the Phase 2 trial to just 36 people.

More about HER-Vaxx and the upcoming clinical trial

According to Imugene, HER-Vaxx is designed to detect and produce an antibody against a protein called HER-2 normally found on the cell surface in patients with breast and gastric cancers.

The Phase 2 study will be conducted to test the efficacy and response of these patients showing signs of the HER-2 protein.

This trial will be conducted in countries throughout Asia, Eastern Europe and India. The countries were chosen as health providers in those countries have difficulties accessing proven drugs like Herceptin and Perjeta. These drugs are marketed by Swiss multinational Roche Holding.

The countries were also selected based on their high prevalence of gastric cancers.

Imugene Managing Director and Chief Executive Officer Leslie Chong said:

I am excited to report that we have completed recruitment in the HER-Vaxx Phase 2 clinical trial.

This is an important achievement for Imugene and the many medical professionals seeking treatments for patients with advanced gastric cancer, who often have very few medical options. 

About the Imugene share price

Imugene is a clinical stage immuno-oncology company developing a range of new immunotherapies that seek to activate the immune system of cancer patients to treat tumours.

The Imugene share price has performed strongly over the past year, returning more than 160% for shareholders.

At the current share price, the company commands a market capitalisation of roughly $474 million.

More reading

• What’s with the Immutep (ASX:IMM) share price today?
• ASX 200 up 1.55%: ANZ & Westpac surge higher, Afterpay & Xero tumble
• The Galaxy Resources (ASX:GXY) share price has rocketed 20% in 2021
• Are these 4 ASX medical shares set for a healthy 2021?
• 3 highest yielding ASX dividend shares

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why did the Imugene (ASX:IMU) share price jump 5% this morning? appeared first on The Motley Fool Australia.

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The Immutep Ltd (ASX: IMM) share price has failed to rally this morning after the company released an update on its cancer trial.

The Sydney based biotechnology company’s share price lifted 1.23% to 41 cents in early morning trade, but has since retreated back to its opening price of 40 cents.

What did Immutep announce?

Immutep reported it has enrolled and dosed its last patient for stage 2 Part C of its TACTI-002 Phase II study. This marks the completion of recruitment for the important trial.

Immutep is evaluating its lead product candidate, eftilagimod alpha (“efti”), in combination with MSD’s KEYTRUDA (pembrolizuman). In Part C, the study focuses on treating patients with second-line head and neck squamous cell carcinoma (HNSCC).

This comes after the company announced in December that the United States Patent & Trade Mark Office had granted its patent, entitled Combined Preparations for the Treatment of Cancer or Infection.

Importantly, Immutep believes the new patent covers the combination of ingredients used in the TACTI-002 Phase II study.

Interim data

Immutep reported that interim data from the TACTI-002 study was encouraging. Subsequently, while at the Society for Immunotherapy of Cancer, the company mentioned the second line HNSCC patient data was very robust and formed a basis for additional clinical development.

Lastly, Immutep notified the market that the TACTI-002 trial involving patients with first-line non-small cell lung cancer (NSCLC) had commenced. An additional 4 new patients have also been recruited, on top of the already 74 patients that were previously announced on 19 November. 40 of the 110 patients with first-line NSCLC have now been recruited for Part A of the TACTI-002 study.

The company expects further interim data from the TACTI-002 study in the first half of 2021.

About the Immutep share price

Immutep shares have been rallying for the last 12 months, with a 1-year return of 52.83% compared to the S&P/ASX 200 Index (ASX: XJO) loss of 1.85% over the same period.

The company has now grown to a $262.73 million market capitalisation.

More reading

• Why AVZ Minerals, Immutep, Kogan, & Strategic Elements shares are pushing higher
• Why the Immutep (ASX:IMM) share price jumped 9% higher today
• Why the Immutep (ASX:IMM) share price is on watch today
• ASX stock of the day: Immutep (ASX:IMM) shares blast up 60% on trial news

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. The benchmark index is currently up 1.55% to 6,709.2 points.

Here’s what has been happening on the market today:

Bank shares higher.

The big four banks are back on form again on Thursday and are charging higher. This has given the ASX 200 index a major boost. The best performers are Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC), which have recorded gains of 4%. This follows a positive note out of Citi in the United States. According to the AFR, Citi’s US bank analysts have put conviction buy ratings on ANZ and Westpac’s shares. Citi expects the big four banks to resume paying out up to three-quarters of their profits as dividends.

Tech shares lower.

It has been a disappointing day for the tech sector on Thursday. At lunch the likes of Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) are tumbling lower and weighing heavily on the S&P ASX All Technology Index (ASX: XTX). So much so, the tech index is down 1.6% at the time of writing. This follows a weak session for the Nasdaq index on an otherwise positive night of trade on Wall Street. The Nasdaq index fell 0.6% overnight, whereas the Dow Jones jumped 1.45%.

ASX Ltd update.

The ASX Ltd (ASX: ASX) share price is edging lower following the release of its activity report for December and calendar year 2020. During the month of December, the stock exchange operator saw the average daily number of Cash Market trades fall 6% compared to the prior corresponding period. However, the average daily value traded on-market was 22% higher than the prior corresponding period at $5.6 billion.

Best and worst performers.

The best performer on the ASX 200 on Thursday has been the Oil Search Ltd (ASX: OSH) share price with a gain of 6.5%. This follows a solid rise in oil prices this week. The worst performer has been the Xero share price with a 4.5% decline. This is being driven by weakness in the tech sector today.

More reading

• Why the Oil Search (ASX:OSH) share price is surging higher today
• Why Nick Scali, Nitro Software, Silver Lake, & Xero shares are dropping lower
• Do ASX mining companies carry the Australian share market?
• Why the ASX Ltd (ASX:ASX) share price is pushing higher today
• 2 blue chip ASX dividend shares to buy

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Galaxy Resources Limited (ASX: GXY) share price has soared more than 20% in the four trading sessions so far this year. Shares in the lithium producer are up 6.46% today alone, with the Galaxy share price sitting at $2.80 per share at the time of writing. 

Stronger spot prices lifting ASX lithium shares 

It has been a challenging few years for lithium producers where prices continued to grind lower following an influx of producers and lack of demand since late 2018. 

Orocobre Limited (ASX: ORE) is a good example of a producer that was struggling to produce on a profitable basis. In its September quarter 2020 update, the company produced 2,353 tonnes at an average cost of US$3,974 per tonne but an average price received of US$3,102 per tonne. 

However, prices appear to have bottomed in recent months. Pilbara Minerals Ltd (ASX: PLS) provided a December quarter shipments update on 6 January 2021. The update cited a material uplift in lithium chemicals pricing within China, with Platts Battery Grade lithium carbonate pricing up 35% from its lows in August 2020. 

Galaxy cashed up and ready to ramp up production 

In November 2020, Galaxy raised $161 million to accelerate its Sal de Vida Stage 1 project and progress its James Bay project to construction ready status. 

Galaxy currently holds three assets.

Sal de Vida is a high-grade, large scale brine resource in the Catamarca province, Argentina with an expected project life of more than 40 years. The project is currently in the design and piloting stage, which will end in the first quarter of this year with updated cost estimates and project financials. The company is aiming to begin construction and commissioning in 2022, and progressively ramp up production throughout 2023. 

James Bay is a large, high-grade, hard-rock spodumene deposit located in Quebec, Canada. This project holds a similar timeline as Sal de Vida, where the company is aiming commence the construction of the plant and operational readiness in 2022. 

Mt Cattlin is Galaxy’s flagship resource, and a mature and stable operation. Galaxy opted to adapt Mt Cattlin to market conditions by moderating its production settings to 50–55% of nameplate capacity. In its capital raising presentation, Galaxy advised it is examining the potential ramp up of Mt Cattlin to full capacity, subject to inventory levels and prices. 

Foolish takeaway

Lithium prices are starting to recover after a prolonged downturn. Galaxy’s Mt Cattlin resource is able to ramp up production, its Sal de Vida resource has the potential to become one of the lowest cost lithium producers globally, and James Bay is well positioned to supply into the emerging European and Northern American regions.

Today, the Galaxy share price is more than 6% higher at the time of writing. 

More reading

• Why Atomos, BOD Australia, Galaxy, & Zebit shares are racing higher
• Why these ASX shares just stormed to 52-week highs or better
• ASX 200 drops 1.1%
• Why the Pilbara Minerals (ASX:PLS) share price jumped 8% to a 52-week high
• Why ASX lithium shares are running hot in 2021

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If 2020 taught us anything, it was the importance of quality healthcare. The COVID-19 pandemic put unprecedented demand on global health services, with many providers rising to the challenge. Healthcare has long been seen as a defensive investment sector — no matter the state of the economy, the population will need the lifesaving therapies and treatments provided by healthcare companies. 

The healthcare sector is made up of many different industries — from hospital providers, to medical device makers, to pharmaceutical companies. There are a wide variety of ASX healthcare shares, with nearly 200 healthcare companies listed on the ASX. These range from behemoths like CSL Limited (ASX: CSL) to small-cap experimental healthcare companies. 

We take a look at how 4 ASX healthcare companies performed last year, and what they might be focusing on as we enter 2021. 

Cynata Therapeutics Ltd (ASX: CYP)

Cynata Therapeutics is a stem cell and regenerative medicine company that has developed a therapeutic stem cell platform technology called Cymerus. Cymerus technology allows for the manufacture of Mesenchymal stem cells (MSCs) at a commercial scale.

MSCs have the ability to reduce inflammation, enhance clearance of pathogens, and stimulate tissue repair. They are at the forefront of a new generation of treatments being investigated to treat diseases including osteoarthritis, Crohn’s disease, and heart disease. As the most widely studied type of adult stem cells, there are currently over 850 clinical trials in progress using MSCs. The ability to achieve economic manufacture of MSCs at commercial scale has the potential to open a wide range of therapeutic and manufacturing possibilities for Cynata. 

In 2020, Cynata significantly advanced its leadership position in regenerative medicine and emerged in a robust position to progress key clinical trials with the lifting of pandemic restrictions. The company has a broad pipeline of clinical developments plans. Its phase 3 osteoarthritis trial commenced in November 2020 and a clinical trial treating intensive care patients with COVID-19 in Australia is open for enrolment.

In addition, Cynata is focused on developing clinical programs for new priority targets of idiopathic pulmonary fibrosis, renal transplantation, and diabetic foot ulcers, leveraging encouraging preclinical data. 

At the time of writing, the Cynata share price is sitting at 68 cents per share, with a current market capitalisation of $94.22 million.

Polynovo Ltd (ASX: PNV)

Polynovo develops medical devices using its patented bioabsorbable polymer technology, NovoSorb. The Novosorb polymer technology originated from the CSIRO and is driving Polynovo’s next generation of novel medical devices currently in development. These devices are set to bring clinical advances to multiple surgical applications including hernia repair and breast reconstruction.  Novosorb BTM is the first product commercialised by Polynovo. First used in Adelaide in 2013, Novosorb BTM is an implantable wound dressing that can be integrated into the body as it heals. 

Novosorb BTM works to regenerate the dermis, providing a scaffold which blood vessels can migrate into. This allows new cells to regenerate and repopulate the structure before the product dissolves away. The only synthetic product in its space, sales of Novosorb BTM increased 104% in FY20 thanks to strong performance in the US, Australia, New Zealand and the DACH region in Europe (Austria, Germany, and Switzerland). According to the company, COVID-19 has a minimal impact on sales, with an active digital marketing program proving effective.

Polynovo is now in the process of building a hernia device manufacturing facility, with plans to enter the US market in FY22. At the time of writing, Polynovo’s share price is $3.57 and the company commands a current market cap of $2.43 billion.

Starpharma Holdings Limited (ASX: SPL)

Starpharma is a biopharmaceutical company which develops products based on proprietary polymers called dendrimers. Dendrimers are man-made nanoscale compounds that can be used both to enhance existing health products and as entirely new products.

Starpharma’s proprietary drug delivery platform, DEP, is being used to improve pharmaceuticals, reduce toxicities, and enhance performance. There are numerous programs underway to develop DEP versions of existing drugs, particularly in the area of anti-cancer therapies. DEP partnerships include programs with world leading pharmaceutical companies, which have the potential to generate significant future royalties. 

Starpharma employs a partnering strategy in which sector-leading partners are identified to advance products to market. According to the company, this approach ensures Starpharma can remain focused on its core competencies whilst maximising the opportunities for commercialisation of its technology.

Currently, Starpharma has a number of clinical trials underway, with a trial of its Viraleze product commencing in January 2021. Viraleze is an antiviral nasal spray which has been shown to stop COVID-19 infection in laboratory studies. According to the company, the broad antiviral activity of Viraleze means the product could have an important role in future pandemics. 

The Starpharma share price is currently sitting at $1.52, giving the company a market cap of $621.20 million.

Althea Group Holdings Ltd (ASX: AGH)

Althea is in the medical marijuana game, distributing pharmaceutical grade medical marijuana products. Althea offers a free online service which simplifies the process for accessing medicinal cannabis for patients, professionals, and pharmacies. The Althea Concierge app provides healthcare professionals with access to patient treatment plans and information on dosing specific to the Althea product supplied.

During FY20 Althea continued to deliver strong results despite the impact of COVID-19 restrictions. Althea ended the 2020 financial year with 7,294 patients, more than seven times the number of patients it had at the end of the 2019 financial year. 

It is estimated the Australian medicinal marijuana market grew 3x in 2020, closing the year with almost 30,000 active patients. Althea closed the calendar year with more than 10,000 patients, meaning it holds significant market share in Australia.

Althea is also making progress in the UK, exporting its first UK shipment of medical cannabis products in FY20 and opening MyAccess clinics. In Canada, Althea has entered the manufacturing game with its Peak Processing Solutions facility. The facility aims to take advantage of Canada’s Cannabis 2.0 legislation, which made cannabis containing edibles and concentrates legal. 

At the time of writing, the Althea share price is 45 cents per share, with a market cap of $111.66 million.

More reading

• ASX 200 drops 1.1%
• What strong jobs data means for ASX 200 shares
• Here’s why the PolyNovo (ASX:PNV) share price zoomed 97% higher in 2020
• 2 blockbuster blue chip ASX shares to buy in January
• Which ASX 200 healthcare shares delivered the top returns in 2020?

Kate O’Brien owns shares of CSL Ltd., CYNATA THR FPO, and POLYNOVO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., POLYNOVO FPO, and Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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2020 was a year where quality dividends came few and far in between. Household ASX dividend shares including the big four banks opted to slash payouts, while many shares in sectors heavily affected by COVID-19 had to defer dividends entirely. 

For some ASX 200 dividend shares, revenue and cash flows remained consistent or even improved throughout the height of COVID-19 in Australia. Here are the highest yielding dividend shares in the ASX 200. 

1. Fortescue Metals Group Limited (ASX: FMG) 

Soaring iron ore prices lifted Fortescue’s earnings in 2020. The company reported a 49% increase in net profit after tax to US$4.7 billion and earnings per share of US$1.54 in FY20. Fortescue investors enjoyed the best of both worlds, with triple digit capital gains and $1.760 paid out in dividends in 2020. 

At today’s prices, the company is paying a fully franked dividend yield of 8.80%. For some businesses where revenues might not be growing or a crashing share price is the reason behind a high yield, Fortescue is in a highly profitable position to pay dividends. Current iron ore prices have further helped ASX iron ore miners, pushing the likes of BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue into record territory. 

2. Centuria Office REIT (ASX: COF) 

The Centuria Office share price has slumped more than 25% from pre-COVID levels. However, the company’s rent collections have remained strong throughout the pandemic, with first quarter FY21 averaging 94% across the portfolio. Rent collections for the fourth quarter of FY20 also improved, averaging 96%, an increase from the reported 89% announced on 2 July 2020. 

Fund Manager Grant Nichols commented, “Despite the ongoing impacts from COVID-19, we continue to generate a solid amount of leasing activity, with tenants attracted to the quality, highly connected and affordable office space that the COF portfolio provides. The leasing activity also indicates that tenants continue to value office space as a central workplace, essential to maintaining productivity and culture.

Real estate remains an attractive sector for income, and at today’s prices, Centuria Office is yielding 8.00%. 

3. AGL Energy Limited (ASX: AGL)

The AGL share price went in one direction last year, and that direction was down. Its shares flopped 40% in 2020, and continue to set new 52-month lows in the new year. 

In December, AGL revised its profit guidance for FY21, expecting net profit after tax to be in the range of $500 million to $580 million, down from the $560 million to $660 million it previously flagged. The company blamed the recent incident at its Liddell power plant, as well as a warmer winter and unfavourable wholesale electricity market for the revision.

Brokers are concerned with AGL’s earnings, with UBS downgrading its share price target to $12.25 and Citi lowering its price target to $12.16 in December 2020. The brokers blame the company’s ongoing struggle with margins and soft demand, which could impact earnings by as much as 12% and knock it out of its position as a high yielding ASX 200 dividend share. 

AGL paid out 98 cents in dividends in 2020, and currently yields approximately 7.90%. 

More reading

• Do ASX mining companies carry the Australian share market?
• Here are 3 ASX shares trading near their 52-week lows
• Goldman points to commodities super-cycle: Which ASX mining shares will benefit?
• 20% of Aussie investors would take high returns over personal ethics
• Why Fortescue, Nick Scali, Santos, & Zip shares are charging higher

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has bounced back from yesterday’s weakness and is storming higher. At the time of writing, the benchmark index is up 1.25% to 6,690.3 points.

Four shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Atomos Ltd (ASX: AMS)

The Atomos share price has jumped 11% to $1.09. Investors have been buying the global video technology company’s shares after the release of a trading update. That update revealed that Atomos achieved sales of $32.6 million during the first half. This was well ahead of its previous guidance of ~$28 million. Management advised that sales momentum in the later months of the half accelerated after its customers adjusted to a new COVID norm.

BOD Australia Ltd (ASX: BDA)

The Bod Australia share price has surged 11.5% higher to 48 cents. Investors have been buying the medicinal cannabis company’s shares after it reported strong sales growth. According to the release, Bod filled a total of 3,941 MediCabilis prescriptions during the last six months. This marks a 91% increase on the previous six months and a 114% increase on the prior corresponding period. Bod has now filled over 8,000 MediCabilis prescriptions since July 2019.

Galaxy Resources Limited (ASX: GXY)

The Galaxy share price is up a further 7% to $2.82. This lithium miner’s shares have been on fire over the last few months after lithium prices improved. In fact, an update by rival Pilbara Minerals Ltd (ASX: PLS) on Wednesday revealed that the Platts Battery Grade lithium carbonate pricing is up 35% to date from its lows in August 2020.

Zebit Inc (ASX: ZBT)

The Zebit share price has jumped 11% to $1.05 following the release of a trading update. That update revealed that the ecommerce company achieved net sales of US$44.8 million in the final quarter of 2020. This was a 35.2% increase on the prior corresponding period. Management advised that this was due to the strong trading conditions recorded throughout the peak shopping season.

More reading

• Why the Zebit (ASX:ZBT) share price is jumping 12% today
• Why ASX lithium shares are running hot in 2021
• Why Galaxy (ASX:GXY) and these ASX shares just hit 52-week highs or better
• Why Costa, Galaxy, Oil Search, & Ramelius shares are pushing higher
• These ASX shares have more than doubled in 2020

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Atomos Ltd. The Motley Fool Australia has recommended Atomos Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Oil Search Ltd (ASX: OSH) share price has rocketed higher in early trade as oil prices continue to soar.

Why is the Oil Search share price surging?

Oil Search is the largest oil and gas exploration and development company incorporated in Papua New Guinea.

According to the company’s FY20 interim result, Oil Search produced 14.7 million barrels of oil equivalent (mmboe) for the half year ended 30 June 2020.

That makes Oil Search one of the larger producers on the ASX alongside the likes of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).

2020 was a bitter pill to swallow for investors as the Oil Search share price plummeted more than 50% in the March bear market.

Shares in the Aussie oil producer fell from $7.91 in late January to just $1.81 in March 2020. That came as coronavirus shutdowns crimped demand for energy in key industries like manufacturing and travel.

However, the Oil Search share price has started the year strongly and climbed 5.7% higher in early trade on Thursday. At the time of writing, the Oil Search share price is trading up 5.53% at $4.10.

Other major energy producers are also seeing share price gains this morning. The Woodside share price is up 2.6% to $23.80 per share while Santos shares are trading 4.17% higher at $6.74 per share.

That comes as oil prices continue to recover and surge to new 10-month highs. Crude oil prices are at their highest level since February 2020 after Saudi Arabia flagged surprise output cuts on Tuesday.

Saudi Arabia is set to voluntarily cut 1 million barrels of production per day in good news for investors. The Oil Search share price has jumped on the news and is now up 9.0% this week.

Foolish takeaway

Shares in Aussie oil producers are climbing higher to start the day on Thursday. A surprise OPEC+ cut and positive momentum for the S&P/ASX 200 Index (ASX: XJO) are helping kickstart a good opening week in 2021.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 drops 1.1%
• What strong jobs data means for ASX 200 shares
• ASX 200 down 0.5%: Energy shares jump, big four banks fall, Zip climbs higher
• Why Fortescue, Nick Scali, Santos, & Zip shares are charging higher

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is on course to bounce back strongly from yesterday’s weakness. In late morning trade the benchmark index is up 1.2% to 6,687.8 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is down 2% to $10.95. This appears to have been driven by profit taking from investors after some very strong gains over the last couple of days. In fact, the furniture retailer’s shares hit a new record high on Wednesday. Investors have been buying the company’s shares after it revealed that its profits would double in the first half of FY 2021.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is down 2% to $3.21 despite there being no news out of the software company. However, prior to today, the Nitro share price was up over 100% over the last 12 months. This may have led to a spot of profit taking from investors this morning.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price has tumbled 4% lower to $1.92. Investors have been selling the gold miner’s shares on Thursday after the price of the precious metal pulled back sharply overnight. This was driven by a stronger US dollar and the widening on treasury yields. It isn’t just Silver Lake that is dropping lower. The S&P/ASX All Ordinaries Gold index is down 0.9% at the time of writing.

Xero Limited (ASX: XRO)

The Xero share price has fallen 4% to $141.50. Once again, this appears to have been driven by profit taking. This has particularly been the case in the tech sector on Thursday, which has led to the S&P ASX All Technology Index (ASX: XTX) sinking 1.3% lower today. Despite today’s decline, the Xero share price is still up 75% since this time last year.

More reading

• Do ASX mining companies carry the Australian share market?
• Why these ASX shares just stormed to 52-week highs or better
• Are heads in the clouds with these sky high P/E ratios?
• Why Fortescue, Nick Scali, Santos, & Zip shares are charging higher
• Insiders have been buying these ASX shares

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Zebit Inc (ASX: ZBT) shares are on the run today after the company provided the market with a positive trading update. At the time of writing, the Zebit share price is flying 11.58% higher to $1.06.

What’s driving the Zebit share price higher?

The Zebit share price is surging this morning following the company’s report it has achieved record net sales for its FY20 fourth quarter and full year performance.

The company delivered net sales of US$44.8 million in the final quarter, which trumped the previous corresponding period by 35.2%. Management said this was due to the strong trading conditions recorded throughout the peak shopping season. In December alone, net sales accounted for US$21.3 million, which was also 55.4% above the same time last year.

This flowed through to the company’s full year FY20 performance in which Zebit achieved total net sales of US$88.1 million, exceeding FY19’s result.

In the update, Zebit also highlighted that its registered user base grew to 792,000 at the end of the year. This was complemented by the company completing eight B2B acquisition partnerships during the period, which added 28,800 registered users in the fourth quarter.

About Zebit

Based in California, United States, Zebit is an e-commerce company that sells products and provides financing to financially challenged customers.

Its platform offers a built-in buy now, pay later (BNPL) facility, servicing customers who are unable to access traditional credit. Zebit shares first listed on the ASX in October 2020.

Management remarks

Commenting on the company’s achievement, Zebit president and CEO Mr Marc Schneider said:

The strength of Zebit’s performance through Q4 is a bellwether for the increasing demographic of consumers who value and repeatedly use the company’s e-commerce services.

We expect strong growth in 2021 as we expand our reach in helping the increasing number of Americans living paycheck to paycheck purchase everyday products that many of us take for granted.

In addition to its primary e-commerce sales channel, as physical retail stores reopen, Zebit will also enable consumers to continue to finance purchases in physical retailers through sales of electronic gift certificates on our platform that can be redeemed in brick and mortar.

About the Zebit share price

On its first day of trading on 26 October 2020, the Zebit share price opened at $1.50 after floating at an issue price of $1.58. By the end of the day, Zebit shares closed the session at $1.05. By early Decmber, the Zebit share price fell to just below the $1 mark and since then has traded around the same level prior to today’s rise.

Based on current prices, the company has a market capitalisation of around $90 million. 

More reading

• These were 2 of the worst performing IPOs of 2020
• Here’s how ASX buy now, pay later (BNPL) shares have performed in 2020

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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